Freshii Franchise Cost, Revenue & Review 2026
- Investment
- $173K – $641K
- Disclosed sales
- not disclosed
- SBA charge-off
- 32.4%
- on 43 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Freshii is a fast-casual franchise serving healthy salads, wraps, bowls, smoothies, and juices. Franchisees run the restaurants, managing fresh prep, staffing, and counter service in urban and retail locations.
FranchiseVerdict summary · 2026
A Freshii franchise requires a total initial investment of $173K – $641K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 32.4% charge-off rate across 43 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $173K – $641K
- 16th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 52
- 66th pct Service Resta…
- SBA charge-off
- 32.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $173K – $641K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict F (Weakest tier), verdict score 20/100 (higher is better). SBA loan charge-off rate of 32.4% across 43 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -11 franchised outlets in the latest year (1 opened, 12 closed); 2 signed but not yet open (Item 20).
- FLAG8 units terminated last reporting year (15.4% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Freshii Development, LLC
- Parent company
- Freshii Inc.
- FDD Item 1, page 7 of the 2023 FDD
- Ultimate parent
- Foodtastic, Inc.
- FDD Item 1, page 7 of the 2023 FDD
- Incorporated in
- DE
- HQ
- 27 North Wacker Drive, Suite 426, Chicago, Illinois 60606
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $1.6M
- vs $2.3M prior year
Overview
About
- CEO
- Peter Mammas
- Headquarters
- IL
- Founded
- 2008
- FDD year
- 2023
- States available
- 20
Can you afford it, and what does the money buy?
Entry cost runs 16% below the typical quick-service restaurants franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $133K | $551K |
| Total initial investment | $173K | $641K |
Source: Freshii 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $173K – $641K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $60K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $30K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 7.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Freshii makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Freshii unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.5% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -40.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 25% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Freshii Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 52
- Opened
- 1
- Last reporting year
- Closed
- 12
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 23.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 25.0%
- Net growth (3-yr)
- -40.2%
- Net unit change over 3 years
- 3-yr CAGR
- -40.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 8
- Not renewed
- 0
- Signed, not yet open
- 2
- 0.04 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Termination rate
- 15.4%
- Franchisor-initiated terminations
- Ceased ops
- 23.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
42 current owners across 18 states.
- IL 6
- TX 5
- CA 3
- IA 3
- MD 3
- NE 3
- NY 3
- GA 2
- OH 2
- OR 2
- PA 2
- WA 2
- +6 more states
Counts only, from the list the franchisor prints in Item 20; 4 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 43
- Loan volume
- $12.9M
- Median loan
- $334K
- 50th percentile
- Charge-off rate
- 32.4%
- on 43 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 67.6%
- 5-yr charge-off
- 14.3%
- Loans approved 2021+
- Active lenders
- 26
- Defaults
- 12
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand above franchise avg ↑
- Jobs supported
- 681
- 5.8 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 83% went to startups / new businesses, 17% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Freshii charge-off rate by loan vintage
Top lenders financing Freshii franchisees
Showing 3 of 26 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Freshii from SBA 7(a) FOIA data.
- Principal loss rate
- 21.5%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 6.55%
- Avg chargeoff amount
- $212K
- Lender concentration
- 10.0%
- Job velocity
- 5.8 per $100K
- Startup risk premium
- +41.2pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 681
Top SBA lendersTop lender holds 10% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Byline Bank | 4 | $1.5M | 0.0% |
| 2 | The Huntington National Bank | 4 | $642K | 0.0% |
| 3 | Patriot Bank, National Association | 3 | $1.3M | 33.3% |
| 4 | Southern Bank | 2 | $831K | 0.0% |
| 5 | PNC Bank, National Association | 2 | $949K | 0.0% |
| 6 | Fortifi Bank | 2 | $718K | 100.0% |
| 7 | Legacy National Bank | 2 | $300K | 100.0% |
| 8 | Capital One, National Association | 2 | $549K | 0.0% |
| 9 | Farmers State Bank | 2 | $250K | 0.0% |
| 10 | Stearns Bank National Association | 1 | $292K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 9 | 3 | 33.3% |
| CACalifornia | 4 | 1 | 25.0% |
| FLFlorida | 3 | 1 | 33.3% |
| IAIowa | 3 | 1 | 33.3% |
| WAWashington | 3 | 0 | 0.0% |
| WIWisconsin | 3 | 2 | 66.7% |
| ARArkansas | 2 | 2 | 100.0% |
| GAGeorgia | 2 | 1 | 100.0% |
| MIMichigan | 2 | 0 | 0.0% |
| OHOhio | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 32.4% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 32.4% — 102% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two arbitration matters: (1) 2512549 Ontario Inc. v. Lettuce Eatery Canada (affiliate) — breach of contract re territory, settled Feb 2022; (2) Kore Meals, LLC v. Freshii Development, LLC and Freshii, Inc. — breach of Development Agent Agreement, settled Feb 2023. No litigation against franchisees in 2022.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financials for Freshii Development, LLC, expressed in thousands of USD. FY2022 (52 weeks ended Dec 25, 2022): total revenue $1,646K = royalty revenue $1,259K + franchise fees $387K. FY2021 total revenue $2,292K. KPMG LLP audited FY2022; PricewaterhouseCoopers LLP audited FY2021 and FY2020 (restated).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 20 / 100 verdict
- 01HIGHTwo breach of contract litigations (Lettuce Eatery Canada affiliate and Kore Meals/Freshii Development) indicate internal conflicts, partner disputes, and potential franchisor-franchisee relationship friction
- 02MINORNo Item 19 disclosure (average unit volumes, revenues, or profitability) prevents validation of ROI claims; $172.5K-$641K investment range lacks transparency on realistic returns
- 03MED6% royalty on undisclosed gross sales creates cash flow risk; without knowing average unit economics, franchisees cannot assess true profitability or break-even timelines
- 04MEDCompetitive QSR segment (health/juice bars) has high saturation and declining consumer traffic post-2020; Freshii's unit decline may reflect broader market contraction, not just brand weakness
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Ontario, Canada |
| Jury trial waiver | No |
| Governing law | Ontario, Canada |
| Litigation count | 2 |
View Item 3 litigation summary
Two arbitration matters: (1) 2512549 Ontario Inc. v. Lettuce Eatery Canada (affiliate) — breach of contract re territory, settled Feb 2022; (2) Kore Meals, LLC v. Freshii Development, LLC and Freshii, Inc. — breach of Development Agent Agreement, settled Feb 2023. No litigation against franchisees in 2022.
Items 10, 11
Training & Operations
- Classroom training
- 19 hrs
- On-the-job training
- 100 hrs
- Training location
- Corporate Store, Toronto, Ontario, Canada; online/webcast
- Ongoing training
- Required
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Oracle
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle
Item 20 · call current owners
Franchisee Contacts
46 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Freshii franchise?
The total investment to open a Freshii franchise ranges from $173K – $641K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Freshii franchise owners earn?
Freshii makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Freshii?
Freshii is franchised by Freshii Development, LLC. Its parent company is Freshii Inc.. The ultimate parent named in the FDD is Foodtastic, Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Freshii FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Freshii FDD and qualifies whose outlets they describe.
What is Freshii's franchise failure rate?
Based on SBA 7(a) loan data, Freshii has a charge-off rate of 32.4% across 43 loans, meaning 32.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Freshii franchise locations are there?
As of their most recent FDD filing, Freshii has 52 total units in the United States, including 52 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Freshii a good franchise to buy?
FranchiseVerdict rates Freshii as a F-grade franchise with a verdict score of 20 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Freshii, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.